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BULGARIA IN FIGURES – 2016 EDITION The Booklet has been compiled by courtesy of: National Statistical Institute, Bulgarian National Bank and InvestBulgaria Agency. Dear business partners, We present to your attention the seventh edition of the brochure “Bulgaria in Figures” of the Bulgarian Chamber of Commerce and Industry (BCCI). It contains economic information about our country, with an emphasis on the unique achievements and advantages for doing business in Bulgaria. Bulgarian entrepreneurs surprised analysts by achieving higher economic growth than forecasted, due to the intensified business activity, and expansion and diversification of relations with our partners. PREPRESS: Vezni Ltd. E-mail: office@vezni.biz As a member of the European Union, Bulgaria continues to be among the leaders by low tax rates and public debt, competitive operating costs and macroeconomic stability. Reforms in key areas have been activated – healthcare, pension contributions, education and judicial system. As coordinator of the nationally representative employers’ organizations in 2016, BCCI continues to promote changes that will result in improved business environment. We hope that all social partners will do whatever it takes for our country to remain a stable and attractive destination for business and tourism. We will provide professional assistance to all companies seeking business opportunities in Bulgaria. A brief reminder of our services is available at the end of the brochure. We will be with you and next to you as we have been for more than 120 years. When using data from the Bulgarian Chamber of Commerce and Industry’s publication, the source of information must be cited obligatory. The information provided in this brochure was correct at the time it went to press, April 2016. Best regards, Tsvetan Simeonov BCCI President 1 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION REPUBLIC OF BULGARIA Facts about Bulgaria ааEU, NATO and WTO Membership North Central region North-West region Montana Veliko Tarnovo Lovech Sofia (cap) Kyustendil Gabrovo Dobrich Razgrad Ruse Pleven Vratsa Pernik North-East region Silistra Vidin Shumen Varna Targovishte Sliven Sofia Stara Zagora Plovdiv Burgas Yambol Pazardzhik Blagoevgrad Haskovo Smolyan ааStability in financial environment: Bulgaria’s debt is the third lowest in the EU 28 (27.6% of GDP) as of 2014 ааBusiness-friendly taxation Simple and low ааCompetitive operational costs and competitive labour level Main indicators – actual data South Central region 2011 2012 2013 2014 2015 40 954 41 693 41 911 42 750 44 162 GDP real growth rate (%) 1,8 0,6 0,9 1,7 3,0 Inflation (%) 4,2 3,0 0,9 -1,4 -0,1 Government deficit (% of GDP) -2,0 -0,6 -0,8 -5,8 -2,9 Exports (mill. EUR) 20 264 20 770 22 271 22 105 23 248 Imports (mill. EUR) GDP (mill. EUR) General data State government: Parliamentary Republic Head of state: President Head of government: Prime-Minister Capital: Sofia Area: 111 001.9 sq.km. 25 459 25 828 26 189 26 411 58,4 58,8 59,5 61,0 62,9 Unemployment rate (%) 11,3 12,3 12,9 11,4 9,1 Source: Eurostat, Bulgarian National Bank, National Statistical Institute 2016 2017 2018 2019 45 617 47 257 49 073 50 991 GDP (real growth rate %) 2,1 2,5 2,7 2,7 Exports (real growth rate %) 4,5 4,7 4,9 5,1 Imports (real growth rate %) 2,6 3,6 4,7 5,2 Average inflation rate (%) -0,8 1,1 1,2 1,4 Unemployment rate (%) 8,6 7,9 7,4 7,1 GDP (mill. EUR) Population: 7 153 784 persons as of 31.12.2015 Official language: Bulgarian Religion: Mostly Eastern Orthodox Christians National currency: LEV (BGN - fixed to the Euro, 1 EUR = 1.95583 BGN, since 1997) 23 406 Employment rate (%) Macroeconomic forecast Administrative and territorial division: 28 districts and 265 municipalities 2 environment: South-East region Kardzhali South-West region ааStrategic geographical location and openness to foreign markets: crossroad between Europe, Asia and Africa Source: Ministry of Finance of the Republic of Bulgaria 3 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN THE INTERNATIONAL RANKINGS Did you know that Bulgaria…? …is the SEVENTH fastest-growing economy in 2015 in the EU. …ranks FIRST in the world in the production of lavender. For the past three years, our country has managed to surpass France from the first place and France is historically a leader in this field. …is THE BEST outsourcing destination in Europe, according to Cushman & Wakefield’s rating for 2015. In the world our country takes the third place. Bulgaria has competitive positions in the different international indices. According to the following rankings the country has the best performance in terms of lower taxes, budget openness, globalization and peace. i Additional information: http://bcci.bg/resources/files/Rankings_Criteria.pdf Position of Bulgaria in international rankings 67 Tax Misery & Reform Index 2009 7 …is the SECOND largest exporter of sunflower seeds worldwide in 2014. Our market share in the exports of this commodity in the planet is 14.5%. 100 Open budget index 2015 18 207 Index of Globalization 2015 31 EuroHealth Consumer Index 2015 31 35 162 Global peace index 2015 32 …has accommodated about 50 companies producing components and systems for the global automotive industry. They are making different types of auto parts for brands like BMW, Mercedes, Audi, Ford, Volvo, Peugeot, Renault, Dacia and others. In eight of every ten cars in Europe, some of the parts are produced in Bulgaria. 180 Environmental performance index 2016 33 189 Doing Business 2016 38 141 Global Innovation Index 2015 39 152 Economic Freedom of the World 2015 42 The Global Gender Gap Rankings 2015 43 145 Best Countries for Business 2015 45 144 167 Democracy Index 2015 46 160 Logistics performance Index 2014 47 Global competitiveness index 2015-2016 54 Country Attractiveness Index in the 54 Venture Capital & Private Equity 2015 World Competitiveness 2015 55 …ranks FOURTH among major European cities in the group of the best investment destinations in terms of cost efficiency according to ranking of magazine fDi Magazine of the most promising investment destinations in Europe in 2016/2017. …falls in the TOP 10 global destinations for creating startup according to ranking of the Swiss company “Seedstars World”, published in 2015. 4 142 Prosperity Index 2015 51 Did you know that Sofia – capital of Bulgaria…? Human Development Index 2015 59 Index of Economic Freedom 2016 60 International Property Index 2015 68 Corruption perceptions index 2015 69 E–Government Development Index 2014 73 Freedom of the press 2015 75 Bulgaria's rank 144 120 61 188 178 129 168 193 199 0 50 100 150 200 250 Total number of ranked countries Source: Respective websites 5 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION FOCUS ON TAXATION Flat-tax system is introduced in Bulgaria - a single 10% rate applied on personal income and a 10% rate applied on corporate income (tax on corporate profits). Value-added tax in Bulgaria is 20%, with the exception of hotel services, where a reduced rate of 9% is applied. Bulgaria is the second least tax burdened country in the EU as of 2014: The overall tax-to-GDP ratio in Bulgaria is 27.8% for 2014, compared to an EU average of 40.0%. Top statutory income tax rates and standard VAT rates (2015), % In Bulgaria taxpayers are released from payment of corporate tax in regions with high unemployment rates. Bulgaria 10.010.0 20.0 Lithuania 15.0 15.0 In 2015 about 2/3 of municipalities 174 (of total 265 in Bulgaria) had 25% higher than the average rate of unemployment for the country and there is 0% corporate income tax. Lom - Municipality Kula Lom Valchedrum Kozlodui Oryahovo Guliantzi Mizia Hairedin Dolna Byala Boichinovtzi Iskar Mitropolia Slatina Kneja Borovan Ivanovo Brusartzi Yakimovo Ruzhentzi Medkovez Montana Chuprene Chiprovtzi Krivodol Georgi Berkovitza Damianovo Varshetz Vratza Svoge Dragoman Kostinbrod Slivnitza Bojurishte Pernik Zemen Kovachevtzi Pleven Yablanitza Svishtov Nikopol Byala Polski Trambesh Pavlikeni Letnitza Suhindol Lovech Ugarchin Pravetz Sevlievo Troyan Vyatovo Strajitza Gorna Oryahovitza Targovishte Antonovo Kazanluk Pavel Bnya Kotel Hisarya Goze Delchev Sandanski Satovcha Banite Smolyan Madan Rudozem Kurdjali Zlatograd Kirkovo 6 22.0 Kavarna Luxembourg Varna Malta Avren Dolni Chiflik Slovenia Byala Nesebar Karnobat Burgas Kameno Sredetz Sozopol Primorsko Bolyarovo Malko Tarnovo 12.5 19.0 25.0 22.0 32.0 19.0 20.0 23.0 20.0 Dalgopol Straldja 35.0 21.0 27.0 12.5 Beloslav Pomorie 19.0 20.6 48.0 Tzarevo Krumovgrad 43.6 35.0 23.0 20.0 29.2 17.0 35.0 50.0 Croatia 47.2 Greece 48.0 18.0 17.0 22.0 20.0 25.0 29.0 23.0 Austria 50.0 25.0 Germany 47.5 30.2 19.0 25.0 21.0 Netherlands Ivailovgrad Municipalities with an unemployment rate lower than the country’s average Czech Republic 45.0 Madjarovo Ardino Momchilgrad Djebel Nedelino 20.0 Ireland Aksakovo Devnya Aitos Nova Zagora Borino Dospat Hadjidimovo Vetrino Suvorovo Ruen Sungurlare Sliven Shabla Balchik Vulchi Dol Provadia Tvarditza Maglij Nikolaevo Radomir Petrich Kaspichan Varbitza Elena Kyustendil Strumyane Shumen General Toshevo Dobrich Smyadovo Yambol Ihtiman Brezovo Stara Zagora Strelcha Kaloyanovo Bratya Samokov Kostenetz Bobov Sapareva Tundja Daskalovi Lesichevo Radnevo Dolna Saedinenie Dol Banya Rakovski Bania Septemvri Dupnitza Churpan Opan Maritza Boboshevo Elhovo Pazardjik Belovo Galabovo Rila Plovdiv Sadovo Kocherinovo Topolovgrad Perushtitza Nevestino Peshtera Dimitrovgrad Yakoruda Krichim Simeonovgrad Rakitovo Parvomai Kuklen Blagoevgrad Bratzigovo Velingrad Mineralni Rodopi Harmanli Asenovgrad Belitza bani Razlog Simitly Haskovo Svilengrad Sarnitsa Batak Devin Lyubimetz Laki Bansko Stambolovo Chernoochene Chepelare Kresna Garmen Trekliano Novi Pazar Veliki Preslav Omurtag Dobrich region Kaolinovo Nikola Venetz Kozlevo Hitrino Loznitza Tryavna Gurkovo 21.0 United Kingdom Krushari Tervel Isperih Samuil Popovo Dryanovo Alfatar Dulovo Zavet Razgrad Opaka Koinardja Sitovo Glavinitza Kubrat Tzar Kaloyan Dve Mogili Veliko Lyaskovetz Tarnovo Zlataritza Gabrovo Teteven Etropole Apriltzi Gorna Chelopech Anton Zlatitza Malina Sopot Pirdop Mirkovo Elin Pelin Karlovo Chavdar Koprivshtitza Panagyurishte Tzenovo Levski Pordim Botevgrad Sofia region Sofia-city Breznik Dolnu Dabnik Lukovit Roman Mezdra Godech Trun Cherven Bryag Borovo Belene 15.0 20.0 Poland Silistra Tutrakan Slivo Pole Ruse Gramada Makresh Dimovo Belogradchik 23.0 20.0 Slovakia Vidin - Region center Vidin Boinitza Latvia Cyprus UNEMPLOYMENT RATE BY MUNICIPALITIES 24.0 Estonia Hungary 16.0 Unemployment by municipalities Novo Selo Bregovo 21.0 Romania 16.0 16.0 52.0 Finland 51.6 Italy 48.9 Spain 46.0 20.0 20.0 24.0 31.4 28.0 22.0 21.0 Municipalities with an unemployment rate equal to or higher than the country’s average (Art. 3, (8) RAIPA) Sweden 57.0 22.0 25.0 Denmark 55.8 23.5 25.0 38.0 20.0 Belgium 53.8 34.0 21.0 Municipalities with an unemployment rate 25% higher than the country’s average (Art. 183, (1) CITA; Art. 3, (8) RAIPA) Portugal 56.5 29.5 23.0 Source: InvestBulgaria Agency France 50.3 Tax on personal income Tax on corporate income VAT (standard rates) Source: Eurostat 7 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION GROSS DOMESTIC PRODUCT In the recent years the Bulgarian economy has been growing steadily, with higher rates than the EU average. Over 2015 economic activity in Bulgaria accelerated significantly, and real GDP growth is expected to reach about 3%. In 2015 the GDP growth was higher than initially expected, supported by strong exports to the EU countries, increasing of investments and improved implementation of EU-funded projects. Real GDP growth rate 8 % change compared to the previous year 6 4 2 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 -2 -4 -6 -8 Bulgaria European Union 28 Source: Eurostat Over the past five years the GDP per employed has grown. The main factor of growth has been the increasе of Gross Value Added in the economy, especially perceivable in 2015. GDP per employed current prices, EUR 15000 11 620 12 133 12 249 12 449 12 815 10000 Gross Domestic Product and Gross Value Added by economic sectors and economic activity groupings at current year prices Million EUR Economic sectors and economic activity groupings 2011 2012 2013 2014 2015* Agriculture, forestry and fishing 1 896 1 913 1 927 1 955 1 939 Mining, quarrying and manufacturing 8 310 8 516 8 194 8 437 8 663 Construction 2 295 2 116 1 749 1 649 1 757 Wholesale and retail trade 7 109 7 167 7 664 7 917 7 931 Information and communication 1 926 1 855 2 034 2 064 2 030 Financial and insurance activities 2 965 2 748 2 549 2 680 2 902 Real estate activities 4 168 4 177 4 120 3 830 3 974 Professional, scientific and technical activities; administrative and support service activities 1 941 2 145 2 024 2 110 2 132 Public administration and defence; compulsory social security; education; human health and social work activities 4 325 4 481 4 897 5 534 5 463 Arts, entertainment and recreation, repair of household goods and other services 838 865 925 949 944 35 773 35 982 36 085 37 124 37 736 5 182 5 710 5 826 5 626 6 426 40 954 41 693 41 911 42 750 44 162 Gross Value Added 5000 0 2011 * Preliminary data 8 Adjustments (taxes less subsidies on products ) 2012 2013* 2014* 2015* Source: National Statistical Institute, Bulgarian Chamber of Commerce and Industry Gross Domestic Product * Preliminary data Source: National Statistical Institute, Bulgarian Chamber of Commerce and Industry 9 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION In 2015 Real estate activities, Mining, quarrying and manufacturing, Information and communication services posted the most significant growth in gross value added compared to 2014. The sectors that reported the largest contribution to GDP in 2015 (share of 44%) were Mining, quarrying and manufacturing and Wholesale and retail trade. The relative share of industry in the GVA of the national economy is 28% which is 0.4 percentage points more than those in 2014. The services sector creates 67% of the total GVA and agriculture - 5%. Structure of Gross Value Added by economic sectors and economic activity groupings in 2015 5.6% Professional, scientific and technical activities; administrative and support service activities 10.5% Real estate activities 7.7% Financial and insurance activities 5.4% Information and communication 5.1% Agriculture, forestry and fishing 14.5% Public administration and defence; compulsory social security; education; human health and social work activities 23.0% Mining, quarrying and manufacturing 4.7% Construction 2.5% Arts, entertainment and recreation, repair of household goods and other services EXPORT Exports have made strong contribution to GDP. The exportation of goods has been the main driver of the economic growth in recent years. Despite volatility in the world economic environment Bulgaria’s export of goods and services picked up significantly. Exports (FOB) in 2015 amounted to EUR 23.2 billion. In 2015 compared to a year earlier the exportation of investment goods increased by 16% and for consumer goods the growth was 7%. In 2015 the exportation of Bulgaria to the EU Member States reported 8% increase compared to 2014, although the dynamics in global prices limited nominal growth of international trade flows. In 2015 Bulgarian exports to the other countries remained at the same lavel as 2014. Retaining their competitive positions, the Bulgarian exporting companies have a potential to expand their market share throughout various regions (euro area and other countries). Exports by years 25000 20000 21.0% Wholesale and retail trade 20 770 2011 2012 22 271 22 105 15000 10000 5000 Source: National Statistical Institute, Bulgarian Chamber of Commerce and Industry 0 10 20 264 Мillion EUR 23 248 2013 2014 2015 Source: Bulgarian National Bank 11 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION Exports by commodity groups Structure of exports by commodity groups in 2015 Million EUR Years 2011 2012 2013 2014 2015 Consumer goods 11.0% Еnergy commodities 0.2% Other Exports 4 506 4 822 5 212 5 736 6 153 Food 903 990 1 089 1 197 1 331 Tobacco 153 216 215 226 208 90 100 101 85 92 1 525 1 456 1 554 1 609 1 593 Medicines and cosmetics 636 701 803 929 984 Furniture and household appliances 655 748 775 880 1 004 Others 544 611 674 810 941 Raw materials 9 403 8 966 9 679 9 121 9 483 Iron and steel 900 720 618 549 411 2 486 2 292 2 408 2 231 2 306 Chemicals 325 346 311 335 379 Plastics and rubber 505 551 658 718 813 Fertilizers 200 203 169 192 238 Textiles 397 372 400 423 483 Raw materials for the food industry 1 835 1 733 2 310 1 844 1 788 Wood products, paper and paperboard 387 403 440 475 494 Exports to the TOP 10 Bulgarian trade partner countries in 2015 14 28 22 17 24 Million EUR Beverages Clothing and footwear Non-ferrous metals Cement Raw tobacco Others Investment goods 165 132 168 133 129 2 189 2 186 2 176 2 205 2 419 3 533 3 493 3 970 4 302 5 008 Machines and equipment 952 1 002 1 142 1 209 1 283 Electrical machines 551 454 548 502 588 Vehicles 391 372 410 410 480 Spare parts and equipment 766 860 1 062 1 149 1 298 Others 872 805 808 1 032 1 359 17 442 17 281 18 861 19 160 20 644 Еnergy commodities 2 815 3 481 3 385 2 911 2 563 Petroleum products 2 226 2 928 2 904 2 369 1 910 589 553 481 543 653 Total non energy commodities Others Other Exports TOTAL EXPORTS /FOB/ 12 8 8 26 34 42 20 264 20 770 22 271 22 105 23 248 26.5% Consumer goods 21.5% Investment goods 40.8% Raw materials Germany Italy Turkey Romania Greece France Belgium United Kingdom China Netherlands Source: Bulgarian National Bank 2 893 2 136 2 008 1 893 976 854 0 587 551 540 500 1000 1 511 1500 2000 2500 3000 3500 Source: Bulgarian National Bank Source: Bulgarian National Bank 13 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION IMPORT Imports by commodity groups In the recent years dynamics of imports as well as exports amendment have reported an increase. According to the balance of payments data, at the end of 2015 imports reached EUR 26.4 billion. The rate of growth in import was 0.8% in nominal terms compared to a year earlier. Years Consumer goods Food, drinks and tobacco Furniture and household appliances Medicines and cosmetics Clothing and footwear Automobiles Others Raw materials Ores Iron and steel Non-ferrous metals Textiles Wood products, paper and paperboard Chemicals Plastics and rubber Raw materials for the food industry Raw skins Raw tobacco Others Investment goods Machines and equipment Electrical machines Vehicles Spare parts and equipment Others Total non energy commodities Еnergy commodities Crude oil and Natural gas Coal Others Oils Electricity Other Imports TOTAL IMPORTS /CIF/ Between January and December 2015 imports of Consumer goods posted the most significant increase – 9% compared to the corresponding period of the previous year. With the highest rate in this commodity group was import of automobiles – 17% growth. Imports of energy resources registered a downward turn due to due to falling international prices of energy resources, while physical volumes increased compared to 2014. In 2015 imports of goods from EU Member States increased by 5.7%. On the other hand, imports from nonEU countries over the review period went down by 3.6%. Imports by years Мillion EUR 30000 25000 23 406 25 459 25 828 2012 2013 26 189 26 411 20000 15000 10000 5000 0 2011 2014 2015 Source: Bulgarian National Bank 14 Million EUR 2011 4 230 1 382 640 2012 4 407 1 509 641 2013 4 770 1 546 706 2014 5 114 1 601 745 2015 5 595 1 756 798 912 465 237 594 8 774 1 489 961 689 1 090 423 941 481 235 601 8 756 1 381 823 718 1 062 448 1 026 531 288 674 9 138 1 608 822 712 1 118 451 1 132 597 317 723 9 071 1 334 770 687 1 177 473 1 222 629 372 818 9 741 1 388 830 711 1 191 512 463 1 120 573 505 1 203 563 518 1 301 596 566 1 381 558 642 1 472 673 97 103 1 768 4 980 1 570 779 861 1 075 696 17 984 106 118 1 830 5 823 1 710 819 1 024 1 407 863 18 986 89 133 1 789 5 768 2 058 801 1 033 963 912 19 676 97 115 1 914 6 576 2 167 896 1 146 1 004 1 363 20 762 103 80 2 141 6 733 2 256 978 1 279 1 074 1 147 22 069 5 366 3 831 304 44 1 187 0 56 23 406 6 421 4 792 226 163 1 240 0 52 25 459 6 037 4 345 139 162 1 391 0 115 25 828 5 241 3 574 147 125 1 395 0 123 26 126 4 213 2 967 102 192 952 0 129 26 411 Source: Bulgarian National Bank 15 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION FOREIGN DIRECT INVESTMENТ Structure of imports by commodity groups in 2015 Million EUR 16.0% Еnergy commodities 0.5% Other Imports 21.2% Consumer goods Foreign direct investment in Bulgaria reached EUR 1.6 billion in 2015, which equates to a 23% increase compared to 2014. The composition of FDI by country in 2015 suggests that foreign direct investment attracted from the Netherlands (EUR 903 million), Germany (EUR 176 million) and Norway (EUR 110 million) accounted for the largest shares. Foreign direct investment flows in Bulgaria by years 25.5% Investment goods Million EUR 2500 2 119 36.9% Raw materials 2000 1 593 1500 Source: Bulgarian National Bank 1 321 1 384 2012 2013 1 339 1000 500 Imports from the TOP 10 Bulgarian trade partner countries in 2015 0 Million EUR 3 193 3 076 Russian Federation Germany Italy China Turkey Romania Greece Poland France Czech Republic 1 438 1 404 1 059 861 855 571 1000 Million EUR 2000 3000 4000 Source: Bulgarian National Bank 903 Netherlands Germany Norway Austria Italy Russian Federation Cyprus Malta Luxembourg Belgium 176 110 96 57 56 56 43 30 29 0 16 2014 2015 Source: Bulgarian National Bank Foreign direct investment flows in Bulgaria - TOP 10 countries in 2015 1 963 1 915 0 2011 200 400 600 800 1000 Source: Bulgarian National Bank 17 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION Foreign direct investment flows in Bulgaria by economic activity According to data from balance of payment, Financial intermediation and Manufacturing attracted about half of FDI flows in 2015. Year – Million EUR 2015 Total FDI flows 1 593 Agriculture, forestry and fishing -44 Mining and quarrying -34 Manufacturing 406 Electricity, gas, steam and air conditioning supply 49 Water supply; sewerage, waste management and remediation activities 5 Construction 74 Wholesale and retail trade; repair of motor vehicles and motorcycles 296 Transportation and storage 2 Accommodation and food service activities 5 Information and communication 68 Financial and insurance activities 442 Real estate activities 62 Professional, scientific and technical activities 31 Administrative and support service activities 22 Education 0 Human health and social work activities 1 Arts, entertainment and recreation 3 Other service activities 1 Not allocated 208 Source: Bulgarian National Bank TOURISM Tourism plays an important role in Bulgaria because of its economic, social and employment potential. The number of international tourists has been growing rapidly, with the exception of 2015. The small decline was mainly due to a lower number of visits from Russia and Germany. In 2015 Bulgaria was visited by 7.1 million tourists. Foreign tourists in Bulgaria 8000 6 328 6 541 6 897 7 311 TOP 10 countries ranked by number of tourists in Bulgaria for 2015 Thousand 987 973 Romania Greece Germany Turkey Russia Macedonia Serbia Poland United Kingdom Ukraine 623 519 484 473 346 261 244 241 0 200 400 600 800 1000 1200 Source: Ministry of Economy of the Republic of Bulgaria Тhe ranking by number of tourists for 2015 is headed by Romania with 987 tousand tourists, followed by Greece with 973 thousand tourists and by Germany with 623 tousand tourists. According to data from balance of payment, in 2015 the revenue from international tourism in Bulgaria exceeded EUR 2.9 billion. Revenue from international tourism in Bulgaria Million EUR 3000 Thousand 7 099 2 721 2 787 2011 2012 2 925 2 980 2 873 2013 2014 2015 2000 6000 1000 4000 0 2000 0 18 2011 Source: Ministry of Economy of the Republic of Bulgaria 2012 2013 2014 2015 Source: Ministry of Economy of the Republic of Bulgaria 19 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION CONSUMER PRICES LABOUR MARKET Consumer price indices and annual inflation Labour force Annual inflation was negative in 2015 and amounted to -0.1 %. This was mainly a result of the decline in international oil prices which contributed to the significant reduction of transport fuel prices, as well as of some administratively controlled prices.The health services and the communications also had essential role for the descending trend in inflation. Consumer price index (annual average inflation rates - %) 6 4 previous year=100 4.2 3.0 2 0 0.9 2011 2012 -1.4 2014 2013 -2 -0.1 2015 Source: National Statistical Institute Annual average consumer price index by main categories (annual average inflation rates - %) Main categories Average consumer price index (CPI) Food and non-alcoholic beverages Alciholic beverages and tobacco Clothing and footwear Housing, water, electricity, gas and other fuels Furnishings, household equipment and routine household maintenance Health Transport Communication Recreation and culture Education Restaurants and hotels Miscellaneous goods and service 20 previous year=100 2013 2014 2015 0,9 -1,4 -0,1 2,8 -1,0 0,3 0,8 1,1 0,8 -0,3 -1,1 0,6 -0,6 -2,0 3,4 According to the latest statistics, in 2015 the labour force in Bulgaria consisted of 3.3 million people – 53% men and 47% women. Most of the labour force (87%) has completed some forms of higher or upper secondary education. Labour force Thousand 2011 2012 2013 2014 2015 Total 3 341 3 344 3 371 3 366 3 337 By sex Male 1 786 1 783 1 797 1 799 1 782 Female 1 555 1 562 1 575 1 567 1 555 By level of education Higher 874 890 948 997 1 018 Upper secondary 2 006 2 011 1 986 1 907 1 890 Lower secondary 397 382 370 391 364 Primary or lower 65 63 67 71 65 Source: National Statistical Institute Employment In 2015 the trend of increasing employment, which started in 2014 countinued with more significant results. The growth of the economic activity and demand for employees by companies have been the main factors for labour market recovery. 2011 4,2 6,9 5,2 2,0 2,2 2012 3,0 3,0 0,1 -0,2 7,4 -0,1 -0,5 0,1 -1,1 -0,4 Employment rate (15-64 years), % 2011 58,4 2012 58,8 2,3 8,2 -0,9 -1,9 2,6 2,7 3,0 1,1 5,7 -0,8 -2,6 6,3 3,0 1,3 -2,5 -0,6 0,0 -1,4 3,0 3,6 0,7 -3,4 -3,4 -3,5 -0,7 1,7 1,2 -0,2 -1,6 -9,1 -3,1 2,8 2,7 1,1 -0,2 Total employment Employees in private enterprises Employees in public enterprises Self-employed Employers Unpaid family workers 2 965 1 894 713 221 108 30 2 934 1 873 722 211 105 25 Source: National Statistical Institute The number of employees reached over 3 million people in 2015. Employment *Preliminary data 2013 59,5 Thousand 2 935 1 859 719 222 115 20 2014 61,0 2015* 62,9 2 981 1 904 706 238 114 21 3 032 1 968 699 237 108 20 Source: National Statistical Institute 21 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION Unemployment In 2015 unemployment rate continued to decrease, reaching 9.1 %, which is the lowest level for 6 years. Unemployment BULGARIAN CHAMBER OF COMMERCE AND INDUSTRY 15 11.3 12.3 12.9 11.4 10 9.1 Established in 1895 5 0 2011 *Preliminary data 2012 2013 2014 2015* Source: National Statistical Institute Average monthly salary In 2015, average hourly labour costs recorded in Bulgaria (€4.1), which were more than 6 times lower than the EU average (€25.0). In 2015 the average monthly wage per employee in Bulgaria amounted to EUR 457, increased in nominal terms by 8.7%. The employer pays social security and health costs for employees of 17.8% on top of their salary. Average monthly salary EUR 500 400 351 374 396 420 457 300 200 The 28 Regional Chamber of Commerce and Industry http://www.bcci.bg/chambres-en.html Bulgarian Chamber of Commerce and Industry 9 Iskar str., 1058 Sofia, Bulgaria Tel.: (+359 2) 8117 400 100 Fax: (+359 2) 987 32 09 0 Web site: www.bcci.bg 2011 2012 2013 2014 2015* Source: National Statistical Institute, Bulgarian Chamber of Commerce and Industry 22 E-mail: bcci@bcci.bg 23 BULGARIA IN FIGURES – 2016 EDITION BULGARIA IN FIGURES – 2016 EDITION BULGARIAN CHAMBER OF COMMERCE AND INDUSTRY – THIRD CENTURY IN BENEFIT OF TRADE AND INDUSTRY Structures and services аа The BCCI is the leading employers’ association in Bulgaria – comprising of over 53 000 members. аа It’s an independent, non-profit NGO that supports, promotes and represents the interests of its members and contributes to the development of international economic cooperation. аа The BCCI is based on the principles of voluntary membership, autonomy and self-financing and seeks to establish ethical and socially responsible relationships in business. аа BCCI contributes to the creation of a more favourable business environment and dedicates many efforts to the promotion and support of entrepreneurship and innovation initiatives. аа In 2016 the BCCI is a coordinator of the Association of the Organizations of Bulgarian Employers (AOBE) – a free union of the employers’ organizations that are officially acknowledged as representative according to the operating legislation. аа The BCCI is a regular member of the International Chamber of Commerce (ICC), World Chambers Federation (WCF), Association of European Chambers of Commerce (Eurochambres), World Trade Centers Association (WTCA), Association of the Balkan Chambers (ABC), Regional Cooperation Council, International Council on Cooperation, BSEC Business Council, Central European Initiative (CEI), GS1 International Association, Enterprise Europe Network (EEN). аа The BCCI participates in over 306 public-private bodies and over 10 Joint Chambers of Commerce and Councils. аа 28 Regional Chambers of Commerce and Industry are united in the Unified System of Bulgarian Chambers of Commerce and Industry. аа The 105 Sectorial Organizations are united in a Council of Sectorial Organizations at the BCCI. аа At BCCI operates Arbitration Court. аа BCCI is a universal organization in which all members are companies from sectors and of different sizes, which comply with Code of Business Ethics. аа BCCI serves all companies, regardless of their status. Contribution of BCCI’s members to the Bulgarian economy, 2015 (%) national level=100 National export of good 58.41 100 and services Export by BCCI's members Gross domestic product 38.14 in the country Gross domestic product of 100 the BCCI's members Persons employed 50.42 with labor contract Persons employed with labor contract in the country at BCCI's members 0 24 20 40 60 100 80 TRADE REGISTER AND MEMBERSHIP DIRECTORATE i Additional information: http://www.bcci.bg/trade-reg-services.html Main activities: 1. Trade Register Services аа Registration in the Unified voluntary trade register of the BCCI – over 53 000 companies and organizations and other legal subjects; аа Obligatory registration of commercial representative offices of foreign persons in Bulgaria; аа Maintenance and updating of the information on file subject to registration; аа Issuing of certificates and references in Bulgarian and foreign languages for the status and financial condition of the registered legal subjects; аа Providing oral and written references in Bulgarian and foreign languages with data about the registered legal subjects. 2. Membership with BCCI. 3. Issuance and validation of documents: аа Certificates of origin of goods; аа Validation of signatures. 4. Issuance and validation of ATA Carnets. 5. Issuance of Force-Majeure Certificates. 6.Assistance for validation of invitation-declarations for business trips of foreigners to the Republic of Bulgaria. 7. Assitance in obtaining information about the existence and current status of foreign companies. 8.Obtaining a qualified electronic signature certificate to physical persons and legal entities respectively StampIT Doc and StampIT DocPro. 9. Excellent SME certificate. 10.General Average Adjusters’ Office. 11.Carrying out coordination and keeping constant relations with the 28 Regional Chambers of Commerce and Industry (RCCI). 12.Carrying out coordination with the sectorial organizations members of the Council of Sectorial Organisations with the BCCI. For Contacts: Zdravka Georgieva, Director Tel.: (+359 2) 987 88 84, 8117 476 Fax: (+359 2) 987 32 09 E-mail: z.georgieva@bcci.bg 100 Source: National Statistical Institute,Bulgarian Chamber of Commerce and Industry 25 BULGARIA IN FIGURES – 2016 EDITION EUROPEAN INTEGRATION AND EUROPEAN PROJECTS DIRECTORATE i Additional information: http://www.bcci.bg/projectsBCCI.htm http://www.bcci.bg/seminars-en.html http://www.bcci.bg/en-een.html http://www.bcci.bg/economic-analyses-en.html Main activities: 1. Participation in EU funded projects. 2. Enhancing the BCCI’s capacity to manage activities under EU programmes. 3. Supporting the development and strengthening of the SMEs. 4.Enterprise Europe Network is the largest information and consulting network in the world that helps SMEs to take advantage of business opportunities in the EU single market, to increase their competitiveness in Europe and find reliable technology, business and project partners. 5. Business research inquiries at a request of the customers. 6. Economic analyses by sectors. 7. Database references about the financial results of a company or a group of companies. 8. Annual classification TOP 100 – The leading companies in the Bulgarian economy. 9.Provision of information based on the annual financial statements of the companies. 10.Publication of annual financial statements. For Contacts: Mariana Tancheva, Director Tel.: (02) 988 34 82; 8117 508, Fax: (02) 987 32 09 E-mail: mtancheva@bcci.bg INTERNATIONAL COOPERATION AND INTERNATIONAL ORGANIZATIONS DIRECTORATE i Additional information: http://www.bcci.bg/business-delegations-en.html http://www.bcci.bg/seminars-en.html http://www.bcci.bg/company-presentation.html Main activities: 1. Assistance for establishing business contacts with partners from all over the word. 2.Organizing workshops and seminars with Bulgarian and foreign lecturers for entrepreneurs. 3. Organizing business missions abroad and business forums and events in Bulgaria. For Contacts: Gabriela Dimitrova, Director Tel.: (02) 987 25 38; 8117 489, Fax: (02) 987 32 09 E-mail: interdpt@bcci.bg, G.Dimitrova@bcci.bg 26 BULGARIA IN FIGURES – 2016 EDITION ARBITRAТION COURT AT BCCI i Additional information: http://www.bcci.bg/arbitration/index.html 1.Out-of-court tribunal institution for fast and efficient settlement of private law property disputes. 2. Four times lower taxes for big claims in comparison with the taxes, applied by public court. 3. Possibility to include foreign arbitrators, if the company has more than 50% foreign capital. 4. 98% of the cases are solved within 12 months period. 5. Possibility to involve private law enforcement agents. Arbitration Clause, recommended by the BCCI: “Any disputes arising from this contract or concerning it, including disputes arising from or concerning its interpretation, invalidity, non-performance of termination, as well as disputes about filling gaps in a contract or its adaption to newly arisen circumstances, shall be settled by the Arbitration Court at the Bulgarian Chamber of Commerce and Industry in accordance with its Rules for cases based on Arbitration Agreements.” For Contacts: Christian Takoff, President Lyubka Vassileva, Secretary of the Arbitration Court Tel.: (+359 2) 8117 434, (+359 2) 8117 560, Fax: (+359 2) 987 32 09 E-mail: acourt@bcci.bg GS1 BULGARIA i Additional information: http://www.gs1bg.org GS1 is a leading global organisation dedicated to the design and implementation of global standards and solutions to improve efficiency and visibility in supply and demand chains globally and across sectors. For Contacts: Tzveta Bratanova, CEO Tel.: (+359 2) 8117 604 E-mail: gs1bulgaria@gs1bg.org BCCI – CENTRE FOR VOCATIONAL TRAINING, TRANSLATIONS, CONSULTATIONS AND COMPANY SERVICES EOOD i Additional information: http://www.bcci.bg/consultations-en.html Main activities: 1. Consultations on economic activity; legal issues; projects for financing; marketing research; tax issues. 2. Filling in/elaboration of commercial documents. 3. Translation / interpretation services. 4.Training. 5. Fairs and Exhibitions. For Contacts: Margarita Damyanova Tel.: (+359 2) 8117 477, Fax: (+359 2) 987 32 09 E-mail: M.Damyanova@bcci.bg 27 BULGARIA IN FIGURES – 2016 EDITION INDUSTRIAL ZONES i Additional information: http://www.bcci.bg/zones/ INDUSTRIAL PARK – STRIMON, Simitli INDUSTRIAL AND BUSINESS PARK AITOS, Aitos BURGAS INDUSTRIAL ZONE, Bugras INDUSTRIAL ZONE “MEDEN RUDNIK”, Burgas INDUSTRIAL ZONE “POBEDA”, Burgas INDUSTRIAL ZONE “NORTH”, Burgas INDUSTRIAL ZONE “SOUTH”, Burgas BALGAROVO INDUSTRIAL ZONE, Balgaravo DOBRICH BUSINESS ZONE, Dobrich INDUSTRIAL ZONE “NORTH”, Dobrich INDUSTRIAL ZONE “WEST”, Dobrich GENERAL TOSHEVO INDUSTRIAL ZONE, General Toshevo GABROVO INDUSTRIAL ZONE, Gabrovo DIMITROVGRAD INDUSTRIAL ZONE, Dimitrovgrad FREE ZONE - SVILENGRAD, Svilengrad SVILENGRAD INDUSTRIAL ZONE, Svilengrad INDUSTRIAL ZONE KARDZHALI - SOUTH, Kardzhali LETNITSA INDUSTRIAL ZONE, Letnitsa TROYAN INDUSTRIAL ZONE, Troyan TECHNOLOGY PARK, Montana INDUSTRIAL PARK - PAZARDZHIK, Septemvri INDUSTRIAL ZONE, Pernik INDUSTRIAL PARK PERNIK - EAST, Pernik INDUSTRIAL ZONE PERNIK, Pernik INDUSTRIAL ZONE DOLNA MITROPOLIA, Dolna Mitropolia INDUSTRIAL ZONE - PLEVEN, Pleven TELISH (PLEVEN) INDUSTRIAL ZONE, Telish INDUSTRIAL PARK RHODOPES, Plovdiv KRUMOVO LOGISTICS ZONE, Plovdiv ASSENOVGRAD INDUSTRIAL ZONE, Asenovgrad MARITSA INDUSTRIAL AND COMMERCIAL ZONE, Plovdiv NORTH INDUSTRIAL ZONE, Plovdiv PLOVDIV FREE ZONE, Plovdiv KALOYANOVO INDUSTRIAL ZONE, Kaloyanovo INDUSTRIAL AND COMMERCIAL ZONE KARADZHALOVO, Karadzhalovo KUKLEN INDUSTRIAL AND COMMERCIAL ZONE, Kuklen RAKOVSKI INDUSTRIAL ZONE, Stryama BUSINESS ZONE “PERISTAR” - RAZGRAD, Razgrad RUSE EAST INDUSTRIAL PARK, Ruse INDUSTRIAL PARK RUSE, Ruse IVANOVO INDUSTRIAL ZONE, Shtraklevo KASPICHAN INDUSTRIAL ZONE, Kaspichan SHUMEN INDUSTRIAL PARK, Shumen DANUBE INDUSTRIAL PARK, Silistra TCHAVDAR PARK BOTEVGRAD, Botevgrad INDUSTRIAL PARK SOFIA, Sofia INDUSTRIAL PARK SOFIA EAST, Elin Pelin SAMOKOV INDUSTRIAL ZONE, Samokov INDUSTRIAL PARK PROMOEST BULGARIA, Sofia INDUSTRIAL PARK WEST, Sofia ELIN PELIN INDUSTRIAL PARK, Elin Pelin GORNA MALINA INDUSTRIAL ZONE, Gorna Malina INDUSTRIAL PARK - PETARCH, Petarch STARA ZAGORA INDUSTRIAL ZONE, Elenino INDUSTRIAL ZONE ZSK, Stara Zagora TARGOVISHTE INDUSTRIAL ZONE, Targovishte INDUSTRIAL ZONE VARNA - WEST, Devnya FIRST INDUSTRIAL ZONE - AVREN, Avren INDUSTRIAL ZONE VETRINO, Vetrino SUVOROVO INDUSTRIAL ZONE, Suvorovo VARNA WEST INDUSTRIAL ZONE, Varna INDUSTRIAL ZONE - SOUTH, STRAZHITSA, Strazhitsa SVISHTOV INDUSTRIAL ZONE, Svishtov VRATZA INDUSTRIAL ZONE, Vratza 28 The building of Sofia Commercial and Industrial Chamber 2 Slavianska Str., Sofia built in 1914 The building of the BCCI 42 Parchevich Str., Sofia Opened 1995 New building of the BCCI 9 Iskar Str., Sofia Bulgarian Chamber of Commerce and Industry 9 Iskar Str., 1058 Sofia, Bulgaria Tel.: (+359 2) 8117 400 Fax: (+359 2) 987 32 09 Web site: www.bcci.bg E-mail: bcci@bcci.bg